You are here

When you are ready to buy real estate do not forget to look at distressed properties. There are many types of properties available to you such as new construction, land only, existing residences, and distressed properties.

One of the main reasons that individuals and investors buy distressed properties is the price. Typically a distressed property has a lower price due to the condition and is sold as-is. The attraction is that the purchase price of a distressed property plus repairs and upgrades can frequently run less than other options.

Other reasons that distressed properties are purchased could include location, school district, lack of inventory of existing residences and historical renovations. It is not uncommon to purchase a distressed property and either demolish the existing home and replace with new construction, although the most common outcome is a renovation.

In addition purchasing a distressed property does allow the purchaser to enact their vision for the renovations and any special needs or requests.